Determinants of Foreign Direct Investments into the Southern African Development Community Region: The case of financial sector development, institutional quality and financial openness
- Authors: Makalima, Sisonke
- Date: 2022-03
- Subjects: Investments, Foreign -- Africa , International finance , Monetary policy
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/21954 , vital:51855
- Description: The SADC region is a 15-member states grouping. Countries in the region have experienced low growth coupled with high levels of poverty and inequality. Attracting FDI to the region has been top priority. However, much is still to be realised. The study employed the Generalised Method of Moments (GMM) technique for the period 1980 to 2019. Empirical results show that financial sector development and financial openness are important determinants of foreign direct investment (FDI) inflows. The results also showed that institutional quality is also a very important variable in determining the inflow of FDI, even though its effect is conditional on financial sector development and financial openness. These results imply that countries with good institutional framework, as well as a developed financial sector and are financially open tend to attract more capital inflows in the form of FDI, thereby creating adequate conditions to boost private sector and investment abroad. Countries in the SADC region should therefore pursue policies which are aimed at improving the institutional framework, the level of financial sector development and further enhance the openness of their financial openness. , Thesis (MCom,) -- Faculty of Management and Commerce, 2022
- Full Text:
- Date Issued: 2022-03
- Authors: Makalima, Sisonke
- Date: 2022-03
- Subjects: Investments, Foreign -- Africa , International finance , Monetary policy
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10353/21954 , vital:51855
- Description: The SADC region is a 15-member states grouping. Countries in the region have experienced low growth coupled with high levels of poverty and inequality. Attracting FDI to the region has been top priority. However, much is still to be realised. The study employed the Generalised Method of Moments (GMM) technique for the period 1980 to 2019. Empirical results show that financial sector development and financial openness are important determinants of foreign direct investment (FDI) inflows. The results also showed that institutional quality is also a very important variable in determining the inflow of FDI, even though its effect is conditional on financial sector development and financial openness. These results imply that countries with good institutional framework, as well as a developed financial sector and are financially open tend to attract more capital inflows in the form of FDI, thereby creating adequate conditions to boost private sector and investment abroad. Countries in the SADC region should therefore pursue policies which are aimed at improving the institutional framework, the level of financial sector development and further enhance the openness of their financial openness. , Thesis (MCom,) -- Faculty of Management and Commerce, 2022
- Full Text:
- Date Issued: 2022-03
Do FDI and public investment crowd in/out domestic private investment in the SADC region?
- Authors: Ngeendepi, Eslon J
- Date: 2019
- Subjects: Investments, Foreign -- Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/49997 , vital:41968
- Description: This paper attempts to contribute to empirical literature on investment theory by examining whether FDI inflows and government capital expenditure crowd-in/out domestic private investment in 15 SADC member states for the period 1991-2017. In order to realise the study objective, the panel Pool Mean Group (PMG)/ARDL technique was employed in estimating the shot-run and long-run relationship between FDI, government capital expenditure, domestic private investment and a further three more variables (interest rate, GDP growth rate and trade openness.) added to the model to form multivariate framework. Findings from the study show that FDI inflow crowd-in domestic private investment in both the short and long run, while government capital expenditure is found to crowd-out domestic private investment in the long-run and crowd-in domestic private investment in the short-run. The study concludes by providing policy recommendations and suggesting areas for further research.
- Full Text:
- Date Issued: 2019
- Authors: Ngeendepi, Eslon J
- Date: 2019
- Subjects: Investments, Foreign -- Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: http://hdl.handle.net/10948/49997 , vital:41968
- Description: This paper attempts to contribute to empirical literature on investment theory by examining whether FDI inflows and government capital expenditure crowd-in/out domestic private investment in 15 SADC member states for the period 1991-2017. In order to realise the study objective, the panel Pool Mean Group (PMG)/ARDL technique was employed in estimating the shot-run and long-run relationship between FDI, government capital expenditure, domestic private investment and a further three more variables (interest rate, GDP growth rate and trade openness.) added to the model to form multivariate framework. Findings from the study show that FDI inflow crowd-in domestic private investment in both the short and long run, while government capital expenditure is found to crowd-out domestic private investment in the long-run and crowd-in domestic private investment in the short-run. The study concludes by providing policy recommendations and suggesting areas for further research.
- Full Text:
- Date Issued: 2019
The interrelationships between foreign direct investment and economic growth in Africa
- Authors: Bolani, Lindelwa Mandisa
- Date: 2015
- Subjects: Investments, Foreign -- Africa , Economic development -- Africa , Africa -- Economic conditions -- 1960- , Africa -- Foreign economic relations , Gross domestic product -- Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1123 , http://hdl.handle.net/10962/d1019885
- Description: There has been a long search for the keys to development and economic growth in Africa. This study investigates the relationship between FDI and economic growth over the period 2000-2012 using data from 48 African countries. On the aggregate regional level FDI and economic growth were found to be positively correlated during this period. Using panel data econometric techniques and the Panel Granger Causality test, results revealed that a bi-directional causality relationship existed between FDI and GDP. Thus, the results suggest that GDP is a requirement for increased investment, and at the same time is the result of increased foreign investment. Thus, the conclusion is that African policy makers are justified in increasing their attempts to create an attractive business environment for foreign investors, as it is beneficial for economic growth.
- Full Text:
- Date Issued: 2015
- Authors: Bolani, Lindelwa Mandisa
- Date: 2015
- Subjects: Investments, Foreign -- Africa , Economic development -- Africa , Africa -- Economic conditions -- 1960- , Africa -- Foreign economic relations , Gross domestic product -- Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:1123 , http://hdl.handle.net/10962/d1019885
- Description: There has been a long search for the keys to development and economic growth in Africa. This study investigates the relationship between FDI and economic growth over the period 2000-2012 using data from 48 African countries. On the aggregate regional level FDI and economic growth were found to be positively correlated during this period. Using panel data econometric techniques and the Panel Granger Causality test, results revealed that a bi-directional causality relationship existed between FDI and GDP. Thus, the results suggest that GDP is a requirement for increased investment, and at the same time is the result of increased foreign investment. Thus, the conclusion is that African policy makers are justified in increasing their attempts to create an attractive business environment for foreign investors, as it is beneficial for economic growth.
- Full Text:
- Date Issued: 2015
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